Looks like things are actually turning around:
http://www.msnbc.msn.com/id/28691801/
IMHO, if we get the Paper Markets to remain at least this liquid and then spend as much of the remaining TARP on foreclosure mitigation, we’re golden.
Again, the ‘plan’ I think will work better than waiting on corporate kindness or bankruptcy court reductions to kick in:
1. Only consider primary home loans
2. Pool loans regionally
3. Regions are assigned a reasonable devaluation rate based on recent local market home sales.
4. All Primary Residence mortgages are reduced at that rate by direct payments on their mortgage principle.
5. Lenders won’t get as much interst over the life of the loan, but will get loads of CASH NOW.
6. With such considerable reductions in monthly payments and a realignment between home values and mortgage sizes, we can all get back to buying and selling and loaning based on real market values.
7. The reduction on mortgage holders’ interest write offs will help mitigate the cost of the plan over time.
If lenders or mortgage holders can’t survive past something like that, they didn’t handle their business right and should feel the pain.
